AN ACT to amend the Code of West Virginia, 1931, as
amended, by adding thereto a new chapter, designated §16A-1-1, §16A-2-1,
§16A-3-1, §16A-3-2, §16A-3-3, §16A-3-4, §16A-3-5, §16A-4-1, §16A-4-2, §16A-4-3,
§16A-4-4, §16A-4-5, §16A-5-1, §16A-5-2, §16A-5-3, §16A-5-4, §16A-5-5, §16A-5-6,
§16A-5-7, §16A-5-8, §16A-5-9, §16A-5-10, §16A-6-1, §16A-6-2, §16A-6-3,
§16A-6-4, §16A-6-5, §16A-6-6, §16A-6-7, §16A-6-8, §16A-6-9, §16A-6-10,
§16A-6-11, §16A-6-12, §16A-6-13, §16A-7-1, §16A-7-2, §16A-7-3, §16A-7-4,
§16A-7-5, §16A-7-6, §16A-8-1, §16A-8-2, §16A-8-3, §16A-9-1, §16A-9-2,
§16A-10-1, §16A-10-2, §16A-10-3, §16A-10-4, §16A-10-5, §16A-10-6, §16A-11-1,
§16A-11-2, §16A-12-1, §16A-12-2, §16A-12-3, §16A-12-4, §16A-12-5, §16A-12-6,
§16A-12-7, §16A-12-8, §16A-12-9, §16A-13-1, §16A-13-2, §16A-13-3, §16A-13-4,
§16A-13-5, §16A-13-6, §16A-13-7, §16A-13-8, §16A-14-1, §16A-14-2, §16A-14-3,
§16A-15-1, §16A-15-2, §16A-15-3, §16A-15-4, §16A-15-5, §16A-15-6, §16A-15-7,
§16A-15-8, §16A-15-9 and §16A-16-1, all relating to medical cannabis generally;
authorizing, under limited conditions, the use, possession, growing, processing
and dispensing of cannabis for serious medical conditions; creating the West
Virginia Medical Cannabis Act; defining terms; establishing medical cannabis
program; placing the medical cannabis program within the Department of Health
and Human Resources and under the direction of the Bureau for Public Health;
listing duties of the Bureau for Public Health in the implementation and
administration of the medical cannabis program; establishing lawful use and
forms of medical cannabis; ensuring patient confidentiality; designating
certain records as public records; authorizing reciprocity agreements to allow
terminally ill cancer patients to obtain medical cannabis in other states;
requiring registration of physicians who may issue certificates to patients allowing
them to obtain medical cannabis; establishing requirements for certified
physicians; placing limits on physician practices related to medical cannabis;
authorizing issuance of certificates to medical cannabis patients and
establishing conditions required for issuance of certificates; establishing
limits on duration of certification and on amounts of medical cannabis which
may be dispensed to a patient; authorizing issuance of identification cards to
patients and caregivers and setting forth content of identification cards;
establishing fees for patients, caregivers, physicians, growers, processors and
dispensers; authorizing patients to have caregivers and establishing
requirements for caregivers; requiring the Bureau for Public Health to verify
information supplied by patients and caregivers; authorizing minors to obtain
medical cannabis through caregivers and establishing qualifications for minors’
caregivers; prohibiting certain actions and behaviors by patients while they
are using medical cannabis; authorizing and defining medical cannabis
organizations; establishing permitting processes for growers, processors and
dispensers of medical cannabis; requiring criminal background checks for
caregivers, growers, processors and dispensers of medical cannabis;
establishing terms for permits; authorizing renewal of permits and establishing
requirements for renewal; authorizing the bureau to suspend or revoke permits
of medical cannabis growers, processers and dispensers for violations;
establishing limits on who may hold permits; establishing limits on who may
hold positions or employment with growers, processors and dispensers; setting
limits on number of permits that may be issued; requiring medical cannabis
inventory tracking systems; requiring reporting by medical cannabis
organizations; requiring rules for storage and transportation of medical
cannabis; requiring medical cannabis organizations to contract with
laboratories for testing of medical cannabis; requiring the bureau and the
Department of Revenue to monitor the prices of medical cannabis; authorizing
counties to prohibit medical cannabis organizations from being located within
their county; establishing requirements for dispensaries; providing for
imposition and collection of a tax; establishing the Medical Cannabis Program Fund;
allocating monies placed in the fund; establishing the Office of Medical
Cannabis within Bureau for Public Health; requiring reporting by medical
cannabis organizations; authorizing the bureau to notify law enforcement of
violations of the act; authorizing rulemaking; establishing the Medical
Cannabis Advisory Board; establishing requirements for advisory board
membership; establishing terms for advisory board members; establishing duties
of the advisory board; establishing criminal offenses related to medical
cannabis and setting penalties therefor; establishing confidentiality
requirements for advisory board members and employees; authorizing civil
penalties and setting amounts thereof for violations of the Medical Cannabis Act;
authorizing research in medical cannabis by the bureau; authorizing Medical
Cannabis Advisory Board to issue recommendations as to forms of cannabis use
and other issues; authorizing the bureau to implement recommendations of the
advisory board; requiring publication of bureau actions and decisions in the
State Register; authorizing academic research regarding medical cannabis and
its uses; establishing requirements to be an academic research institution;
exempting medical cannabis manufacture, distribution, possession and processing
in compliance with the act from the provisions of the Uniform Controlled
Substances Act; limiting persons who may hold an interest in medical cannabis
organizations or employment thereby; clarifying that insurance companies are
not required to provide medical cannabis coverage; limiting the arrest,
prosecution, imposition of penalty, denial of any right or privilege for lawful
use, manufacture, sale or dispensing of medical cannabis; requiring the
Department of Education to promulgate rules regarding possession and use of
medical cannabis in schools; requiring the bureau to promulgate rules regarding
possession and use of medical cannabis in daycare centers; authorizing zoning
restrictions on medical cannabis organizations; requiring notice to the bureau
of zoning restrictions; requiring publication in the State Register of permits
and authorizations issued; requiring issuance of permits and authorizations
only after publication of same in the State Register; and establishing
effective dates.

This chapter is in honor of James William “Bill” Flanigan
and Lucile Gillespie and shall be known and cited as the West Virginia Medical
Cannabis Act.

Article
2. definitions.

§16A-2-1. Definitions.

(a) The following words and phrases when used in this
chapter shall have the meanings given to them in this section unless the
context clearly indicates otherwise:

(1) “Act” means the West Virginia Medical Cannabis Act and
the provisions contained in chapter sixty-a of this code.

(2) “Advisory board” means the advisory board established
under article eleven of this chapter.

(3) “Bureau” mean the Bureau for Public Health within the
West Virginia Department of Health and Human Resources.

(4) “Caregiver” means the individual designated by a
patient or, if the patient is under eighteen years of age, an individual under
article five, to deliver medical cannabis.

(5) “Certified medical use” means the acquisition,
possession, use or transportation of medical cannabis by a patient, or the
acquisition, possession, delivery, transportation or administration of medical
cannabis by a caregiver, for use as part of the treatment of the patient’s
serious medical condition, as authorized in a certification under this act,
including enabling the patient to tolerate treatment for the serious medical
condition.

(6) “Change in control” means the acquisition by a person
or group of persons acting in concert of a controlling interest in an applicant
or permittee either all at one time or over the span of a 12-consecutive-month
period.

(7) “Commissioner” means the Commissioner of the Bureau for
Public Health.

(8) “Continuing care” means treating a patient for at least
six months, in the course of which the practitioner has completed a full
assessment of the patient’s medical history and current medical condition,
including an in-person consultation with the patient, and is able to document
and make a medical diagnosis based upon the substantive treatment of the
patient.

(9) “Controlling interest” means:

(A) For a publicly traded entity, voting rights that
entitle a person to elect or appoint one or more of the members of the board of
directors or other governing board or the ownership or beneficial holding of
five percent or more of the securities of the publicly traded entity.

(B) For a privately held entity, the ownership of any
security in the entity.

(10) “Dispensary” means a person, including a natural
person, corporation, partnership, association, trust or other entity, or any
combination thereof, which holds a permit issued by the bureau to dispense
medical cannabis. The term does not include a health care medical cannabis
organization under article thirteen of this chapter.

(11) “Family or household member” means the same as defined
in section two hundred four, article twenty-seven, chapter forty-eight of this
code.

(12) “Financial backer” means an investor, mortgagee,
bondholder, note holder or other source of equity, capital or other assets,
other than a financial institution.

(13) “Financial institution” means a bank, a national
banking association, a bank and trust company, a trust company, a savings and
loan association, a building and loan association, a mutual savings bank, a
credit union or a savings bank.

(14) “Form of medical cannabis” means the characteristics
of the medical cannabis recommended or limited for a particular patient,
including the method of consumption and any particular dosage, strain, variety
and quantity or percentage of medical cannabis or particular active ingredient.

(15) “Fund” means the Medical Cannabis Program Fund
established in section two, article nine of this chapter.

(16) “Grower” means a person, including a natural person,
corporation, partnership, association, trust or other entity, or any
combination thereof, which holds a permit from the bureau under this act to
grow medical cannabis. The term does not include a health care medical cannabis
organization under article thirteen of this chapter.

(17) “Grower/processor”
means either a grower or a processor.

(18) “Identification card” means a document issued under
article five of this chapter that authorizes access to medical cannabis under
this act.

(19) “Individual dose” means a single measure of medical
cannabis.

(20) “Medical cannabis” means cannabis for certified
medical use as set forth in this act.

(21) “Medical cannabis organization” means a dispensary,
grower or processor. The term does not include a health care medical cannabis
organization under article thirteen of this chapter.

(22) “Patient” means an individual who:

(A) has a serious medical condition;

(B) has met the requirements for certification under
this act; and

(C) is a resident of this state.

(23) “Permit” means an authorization issued by the bureau
to a medical cannabis organization to conduct activities under this act.

(24) “Physician”
means a doctor of allopathic or osteopathic medicine who is fully licensed
pursuant to the provisions of either article three or article fourteen, chapter
thirty of this code to practice medicine and surgery in this state.

(25) “Post-traumatic stress disorder” means a diagnosis
made as part of continuing care of a patient by a medical doctor, licensed
counselor or psychologist.

(26) “Practitioner” means a physician who is
registered with the bureau under article four of this chapter.

(28) “Principal” means an officer, director or person who
directly owns a beneficial interest in or ownership of the securities of an
applicant or permittee, a person who has a controlling interest in an applicant
or permittee or who has the ability to elect the majority of the board of
directors of an applicant or permittee or otherwise control an applicant or
permittee, other than a financial institution.

(29) “Processor” means a person, including a natural
person, corporation, partnership, association, trust or other entity, or any
combination thereof, which holds a permit from the bureau under this act to
process medical cannabis. The term does not include a health care medical
cannabis organization under article thirteen of this chapter.

(30) “Registry” means the registry established by the
bureau for practitioners.

(31) “Serious medical condition” means any of the following,
as has been diagnosed as part of a patient’s continuing care:

(F) Damage to the nervous tissue of the spinal cord
with objective neurological indication of intractable spasticity.

(G) Epilepsy.

(H) Neuropathies.

(I) Huntington’s disease.

(J) Crohn’s disease.

(K) Post-traumatic stress disorder.

(L) Intractable seizures.

(M) Sickle cell anemia.

(N) Severe chronic or intractable pain of neuropathic
origin or severe chronic or intractable pain in which conventional therapeutic
intervention and opiate therapy is contraindicated or has proved ineffective as
determined as part of continuing care.

(O) Terminally ill.

(32) “Terminally ill” means a medical prognosis of
life expectancy of approximately one year or less if the illness runs its
normal course.

article 3. medical cannabis program.

§16A-3-1. Establishment of program.

(a) A medical cannabis program for patients
suffering from serious medical conditions is established. The program shall be
implemented and administered by the bureau. The bureau shall:

(1) Issue permits to medical cannabis organizations
to authorize them to grow, process or dispense medical cannabis and ensure
their compliance with this act.

(2) Register practitioners and ensure their
compliance with this act.

(3) Have regulatory and enforcement authority over
the growing, processing, sale and use of medical cannabis in this state.

(4) Establish and maintain an electronic database to
include activities and information relating to medical cannabis organizations,
certifications and identification cards issued, practitioner registration and
electronic tracking of all medical cannabis as required under this act to
include:

(A) Ensurance that medical cannabis is not diverted
or otherwise used for unlawful purposes by a practitioner or medical cannabis
organization.

(B) Ability to establish the authenticity of
identification cards.

(C) Recording recommended forms of medical cannabis
provided in a certification filed by the practitioner.

(D) Monitoring all growth, transfer, possession, processing,
testing and dispensing of medical cannabis in this state.

(E) The tracking system under article seven of this
chapter must include information under section one, article eight of this
chapter and any other information required by the bureau to be used by the
bureau and dispensaries to enable a dispensary to lawfully provide medical
cannabis. The tracking system and database shall be capable of providing
information in real time. The database shall be capable of receiving
information from a dispensary regarding the disbursement of medical cannabis to
patients and caregivers. This information shall be immediately accessible to
the bureau and other dispensaries to inhibit diversion and ensure compliance
with this act.

(5) Maintain a directory of patients and caregivers
approved to use or assist in the administration of medical cannabis within the
bureau’s database.

(6) Develop a four-hour training course for
physicians regarding the latest scientific research on medical cannabis,
including the risks and benefits of medical cannabis and other information
deemed necessary by the bureau. Successful completion of the course shall be
approved as continuing education credits as determined by:

(A) The State Board of Medicine.

(B) The State Board of Osteopathic Medicine.

(7) Develop a two-hour course for the principals and
employees of a medical cannabis organization who either have direct contact
with patients or caregivers or who physically handle medical cannabis.
Employees must successfully complete the course no later than ninety days after
commencing employment. Principals must successfully complete the course prior
to commencing initial operation of the medical cannabis organization. The
subject matter of the course shall include the following:

(A) Methods to recognize and report unauthorized
activity, including diversion of medical cannabis for unlawful purposes and
falsification of identification cards.

(B) Proper handling of medical cannabis and
recordkeeping.

(C) Any other subject required by the bureau.

(8) Develop enforcement procedures, including announced
and unannounced inspections of facilities of the grower/processors and
dispensaries and all records of the medical cannabis organizations.

(9) Establish a program to authorize the use of medical
cannabis to conduct medical research relating to the use of medical cannabis to
treat serious medical conditions, including the collection of data and the
provision of research grants.

(10) Establish and maintain public outreach programs
about the medical cannabis program, including:

(A) A dedicated telephone number for patients,
caregivers and members of the public to obtain basic information about the
dispensing of medical cannabis under this act.

(B) A publicly accessible Internet website with similar
information.

(11) Collaborate as necessary with other state
agencies or contract with third parties as necessary to carry out the
provisions of this act.

(12) Determine the number and type of medical
cannabis products to be produced by a grower/processor and dispensed by a
dispensary.

(13) Develop recordkeeping requirements for all
books, papers, any electronic database or tracking system data and other
information of a medical cannabis organization. Information shall be retained
for a minimum period of four years unless otherwise provided by the bureau.

(14) Restrict the advertising and marketing of
medical cannabis, which shall be consistent with the Federal rules and
regulations governing prescription drug advertising and marketing.

(b) The bureau shall propose rules for legislative
promulgation pursuant to the provisions of article three, chapter twenty-nine-a
of this code as may be necessary to carry out and implement the provisions of
this act. The bureau shall also have the power to propose and promulgate
emergency rules as may be necessary to carry out and implement the provisions
of this act.

§16A-3-2. Lawful use of medical cannabis.

(a) Notwithstanding any provision of law to the
contrary, the use or possession of medical cannabis as set forth in this act is
lawful within this state, subject to the following conditions:

(1) Medical cannabis may only be dispensed to:

(A) a patient who receives a certification from a
practitioner and is in possession of a valid identification card issued by the
bureau; and

(B) a caregiver who is in possession of a valid
identification card issued by the bureau.

(2) Subject to rules promulgated under this act,
medical cannabis may only be dispensed to a patient or caregiver in the
following forms:

(A) Pill;

(B) Oil;

(C) Topical forms, including gels, creams or
ointments;

(D) A form medically appropriate for administration
by vaporization or nebulization, excluding dry leaf or plant form until dry
leaf or plant forms become acceptable under rules adopted by the bureau;

(E) Tincture;

(F) Liquid; or

(G) Dermal patch.

(3) Unless otherwise provided in rules adopted by
the bureau under section two, article eleven of this chapter, medical cannabis
may not be dispensed to a patient or a caregiver in dry leaf or plant form.

(4) An individual may not act as a caregiver for
more than five patients.

(5) A patient may designate up to two caregivers at
any one time.

(6) Medical cannabis that has not been used by the
patient shall be kept in the original package in which it was dispensed.

(7) A patient or caregiver shall possess an
identification card whenever the patient or caregiver is in possession of medical
cannabis.

(8) Products packaged by a grower/processor or sold
by a dispensary shall only be identified by the name of the grower/processor,
the name of the dispensary, the form and species of medical cannabis, the
percentage of tetrahydrocannabinol and cannabinol contained in the product.

§16A-3-3. Unlawful use of medical cannabis.

(a) Except as provided in section two of this
article, section four of article seven, article thirteen or article fourteen of
this chapter, the use of medical cannabis is unlawful and shall, in addition to
any other penalty provided by law, be deemed a violation of the Uniform
Controlled Substances Act under chapter sixty-a of this code.

(b) It shall be unlawful to:

(1) Smoke medical cannabis.

(2) Except as provided under subsection (c),
incorporate medical cannabis into edible form or sell in edible form.

(3) Grow medical cannabis unless the
grower/processor has received a permit from the bureau under this act.

(5) Dispense medical cannabis unless the dispensary
has received a permit from the bureau under this act.

(c) Edible medical cannabis. — Nothing in
this act shall be construed to preclude the incorporation of medical cannabis
into edible form by a patient or a caregiver in order to aid ingestion of the
medical cannabis by the patient.

§16A-3-4. Confidentiality.

(a) Patient information. — The bureau shall
maintain a confidential list of patients and caregivers to whom it has issued
identification cards. All information obtained by the bureau relating to
patients, caregivers and other applicants shall be confidential and not subject
to public disclosure under chapter twenty-nine-b of this code, including
specifically the following:

(1) Individual identifying information about
patients and caregivers.

(2) Certifications issued by practitioners.

(3) Information on identification cards.

(4) Information provided by the West Virginia State
Police under section two, article five of this chapter.

(5) Information relating to the patient’s serious
medical condition.

(b) Public information. — The following
records are public records and shall be subject to the Freedom of Information
Act, under chapter twenty-nine-b of this code:

(2) The names, business addresses and medical
credentials of practitioners authorized to provide certifications to patients
to enable them to obtain and use medical cannabis in this state. All other
practitioner registration information shall be confidential and exempt from
public disclosure under the Freedom of Information Act.

(3) Information relating to penalties or other
disciplinary actions taken against a medical cannabis organization or
practitioner by the bureau for violation of this act.

§16A-3-5.
Reciprocity for terminally ill cancer patients.

The bureau may enter into
reciprocity agreements with any states that have comparable requirements for
the use and lawful purchase of medical cannabis in a manner consistent with the
provisions of this article to allow terminally ill cancer patients to purchase
medical cannabis in another state.

article 4. Practitioners.

§16A-4-1. Registration.

(a) Eligibility. — A physician included in
the registry is authorized to issue certifications to patients to use medical
cannabis. To be eligible for inclusion in the registry:

(1) A physician must apply for registration in the
form and manner required by the bureau.

(2) The bureau must determine that the physician is,
by training or experience, qualified to treat a serious medical condition. The
physician shall provide documentation of credentials, training or experience as
required by the bureau.

(3) The physician must have successfully completed
the course under subsection (a), section one, article three of this chapter.

(b) Bureau action. —

(1) The bureau shall review an application submitted
by a physician to determine whether to include the physician in the registry.
The review shall include information regarding whether the physician has a
valid, unexpired, unrevoked, unsuspended license to practice medicine in this
state and whether the physician has been subject to discipline.

(2) The inclusion of a physician in the registry
shall be subject to annual review to determine if the physician’s license is no
longer valid, has expired or been revoked or the physician has been subject to
discipline. If the license is no longer valid, the bureau shall remove the
physician from the registry until the physician holds a valid, unexpired,
unrevoked, unsuspended state license to practice medicine in West Virginia.

(3) The West Virginia Board of Medicine and West
Virginia Board of Osteopathic Medicine shall report to the bureau the
expiration, suspension or revocation of a physician’s license and any
disciplinary actions in a timely fashion.

(c) Practitioner requirements. — A
practitioner included in the registry shall have an ongoing responsibility to
immediately notify the bureau in writing if the practitioner knows or has
reason to know that any of the following is true with respect to a patient for
whom the practitioner has issued a certification:

(1) The patient no longer has the serious medical
condition for which the certification was issued.

(2) Medical cannabis would no longer be therapeutic
or palliative.

(3) The patient has died.

§16A-4-2. Practitioner restrictions.

(a) Practices prohibited. — The following
shall apply with respect to practitioners:

(1) A practitioner may not accept, solicit or offer
any form of remuneration from or to a prospective patient, patient, prospective
caregiver, caregiver or medical cannabis organization, including an employee,
financial backer or principal, to certify a patient, other than accepting a fee
for service with respect to the examination of the prospective patient to
determine if the prospective patient should be issued a certification to use
medical cannabis.

(2) A practitioner may not hold a direct or economic
interest in a medical cannabis organization.

(3) A practitioner may not advertise the
practitioner’s services as a practitioner who can certify a patient to receive
medical cannabis.

(b) Unprofessional conduct. — A practitioner
who violates subsection (a) of this section shall not be permitted to issue
certifications to patients and shall be removed from the registry.

(c) Discipline. — In addition to any other
penalty that may be imposed under this act, a violation of subsection (a) of
this section or subsection (f), section three of this article shall be deemed
unprofessional conduct under the West Virginia Medical Practice Act, and shall
subject the practitioner to discipline by the West Virginia Board of Medicine and
West Virginia Board of Osteopathic Medicine, as appropriate.

§16A-4-3. Issuance of certification.

(a) Conditions for issuance. — A
certification to use medical cannabis may be issued by a practitioner to a
patient if all of the following requirements are met:

(1) The practitioner has been approved by the bureau
for inclusion in the registry and has a valid, unexpired, unrevoked,
unsuspended license to practice medicine in this state at the time of the
issuance of the certification.

(2) The practitioner has determined that the patient
has a serious medical condition and has included the condition in the patient’s
health care record.

(3) The patient is under the practitioner’s
continuing care for the serious medical condition.

(4) In the practitioner’s professional opinion and
review of past treatments, the practitioner determines the patient is likely to
receive therapeutic or palliative benefit from the use of medical cannabis, and
other treatments, including treatments involving opioids, have proven
ineffective or otherwise are contraindicated.

(b) Contents. — The certification shall
include:

(1) The patient’s name, date of birth and address.

(2) The specific serious medical condition of the
patient.

(3) A statement by the practitioner that the patient
has a serious medical condition and the patient is under the practitioner’s
continuing care for the serious medical condition.

(4) The date of issuance.

(5) The name, address, telephone number and
signature of the practitioner.

(6) Any requirement or limitation concerning the
appropriate form of medical cannabis and limitation on the duration of use, if
applicable, including whether the patient is terminally ill.

(A) Issuing a certification to determine the
controlled substance history of a patient.

(B) Recommending a change of amount or form of medical
cannabis.

(2) The practitioner shall consider and give due
consideration to other controlled substances the patient may be taking prior to
certifying medical cannabis.

(d) Other access by practitioner. — A
practitioner may access the prescription drug monitoring program to do any of
the following:

(1) Determine whether a patient may be under
treatment with a controlled substance by another physician or other person.

(2) Allow the practitioner to review the patient’s
controlled substance history as deemed necessary by the practitioner.

(3) Provide to the patient, or caregiver on behalf
of the patient if authorized by the patient, a copy of the patient’s controlled
substance history.

(e) Duties of practitioner. — The
practitioner shall:

(1) Provide the certification to the patient.

(2) Provide a copy of the certification to the
bureau, which shall place the information in the patient directory within the
bureau’s electronic database. The bureau shall permit electronic submission of
the certification.

(3) File a copy of the certification in the patient’s
health care record.

(f) Prohibition. — A practitioner may not
issue a certification for the practitioner’s own use or for the use of a family
or household member.

§16A-4-4. Certification form.

The bureau shall develop a standard certification form,
which shall be available to practitioners upon request. The form shall be
available electronically. The form shall include a statement that a false
statement made by a practitioner is punishable under the applicable provisions
of law.

§16A-4-5. Duration.

Receipt of medical cannabis by a patient or caregiver from
a dispensary may not exceed a 30-day supply of individual doses. During the
last seven days of any 30-day period during the term of the identification
card, a patient may obtain and possess a 30-day supply for the subsequent
30-day period. Additional 30-day supplies may be provided in accordance with
this section for the duration of the authorized period of the identification
card unless a shorter period is indicated on the certification.

article 5. patients.

§16A-5-1. Identification cards.

(a) Issuance. — The bureau may issue an
identification card to a patient who has a certification approved by the bureau
and to a caregiver designated by the patient. An identification card issued to
a patient shall authorize the patient to obtain and use medical cannabis as
authorized by this act. An identification card issued to a caregiver shall
authorize the caregiver to obtain medical cannabis on behalf of the patient.

(3) Review of the certification submitted by the
practitioner and the patient.

(c) Application. — A patient or a caregiver
may apply, in a form and manner prescribed by the bureau, for issuance or
renewal of an identification card. A caregiver must submit a separate
application for issuance or renewal. Each application must include:

(1) The name, address and date of birth of the
patient.

(2) The name, address and date of birth of a
caregiver.

(3) The certification issued by the practitioner.

(4) The name, address and telephone number of the
practitioner and documentation from the practitioner that all of the
requirements of subsection (a), section three, article four of this chapter
have been met.

(5) A $50 processing fee. The bureau may waive or
reduce the fee if the applicant demonstrates financial hardship.

(e) Expiration. — An identification card of a
patient or caregiver shall expire within one year from the date of issuance,
upon the death of the patient, or as otherwise provided in this section.

(f) Separate cards to be issued. — The bureau
shall issue separate identification cards for patients and caregivers as soon
as reasonably practicable after receiving completed applications, unless it
determines that an application is incomplete or factually inaccurate, in which
case it shall promptly notify the applicant.

(g) Change in name or address. — A patient
or caregiver who has been issued an identification card shall notify the bureau
within ten days of any change of name or address. In addition, the patient
shall notify the bureau within ten days if the patient no longer has the
serious medical condition noted on the certification.

(h) Lost or defaced card. — In the event of a
lost, stolen, destroyed or illegible identification card, the patient or caregiver
shall apply to the bureau within ten business days of discovery of the loss or
defacement of the card for a replacement card. The application for a
replacement card shall be on a form furnished by the bureau and accompanied by
a $25 fee. The bureau may establish higher fees for issuance of second and
subsequent replacement identification cards. The bureau may waive or reduce the
fee in cases of demonstrated financial hardship. The bureau shall issue a
replacement identification card as soon as practicable. A patient or caregiver
may not obtain medical cannabis until the bureau issues the replacement card.

§16A-5-2. Caregivers.

(a) Requirements. —

(1) If the patient designates a caregiver, the
application shall include the name, address and date of birth of the caregiver,
and other individual identifying information required by the bureau and the
following:

(A) Federal and state criminal history record
information as set forth in subsection (b) of this section.

(B) If the caregiver has an identification card for
the caregiver or another patient, the expiration date of the identification
card.

(C) Other information required by the bureau.

(2) The application shall be accompanied by a fee of
$50. The bureau may waive or reduce the fee in cases of demonstrated financial
hardship.

(3) The bureau may require additional information
for the application.

(4) The application shall be signed and dated by the
applicant.

(b) Criminal history. — A caregiver shall
submit fingerprints for the purpose of obtaining criminal history record
checks, and the West Virginia State Police or its authorized agent shall submit
the fingerprints to the Federal Bureau of Investigation for the purpose of
verifying the identity of the applicant and obtaining a current record of any
criminal arrests and convictions. Any criminal history record information
relating to a caregiver obtained under this section by the bureau may be
interpreted and used by the bureau only to determine the applicant’s character,
fitness and suitability to serve as a caregiver under this act. The bureau
shall also review the prescription drug monitoring program relating to the
caregiver. The bureau shall deny the application of a caregiver who has been
convicted of a criminal offense that occurred within the past five years
relating to the felony sale or possession of drugs, narcotics or controlled
substances, or conspiracy thereof. The bureau may deny an application if the
applicant has a history of drug abuse or of diverting controlled substances or
illegal drugs.

§16A-5-3. Notice.

An application for an identification card shall include
notice that a false statement made in the application is punishable under the
applicable provisions of law.

§16A-5-4. Verification.

The bureau shall verify the information in a patient or
caregiver’s application and on any renewal form.

§16A-5-5. Special conditions.

The following apply:

(1) If the practitioner states in the certification
that, in the practitioner’s professional opinion, the patient would benefit
from medical cannabis only until a specified earlier date, then the
identification card shall expire on that date.

(2) If the certification so provides, the
identification card shall state any requirement or limitation by the
practitioner as to the form of medical cannabis for the patient.

§16A-5-6. Minors.

If a patient is under eighteen years of age, the following
shall apply:

(1) The patient shall have a caregiver.

(2) A caregiver must be one of the following:

(A) A parent or legal guardian of the patient.

(B) An individual designated by a parent or legal
guardian.

(C) An appropriate individual approved by the bureau
upon a sufficient showing that no parent or legal guardian is appropriate or
available.

§16A-5-7. Caregiver authorization and limitations.

(a) Age. — An individual who is under
twenty-one years of age may not be a caregiver unless a sufficient showing, as
determined by the bureau, is made to the bureau that the individual should be
permitted to serve as a caregiver.

(b) Changing caregiver. — If a patient wishes
to change or terminate the designation of the patient’s caregiver, for whatever
reason, the patient shall notify the bureau as soon as practicable. The bureau
shall issue a notification to the caregiver that the caregiver’s identification
card is invalid and must be promptly returned to the bureau.

(c) Denial in part. — If an application of a
patient designates an individual as a caregiver who is not authorized to be a
caregiver, that portion of the application shall be denied by the bureau. The
bureau shall review the balance of the application and may approve that portion
of it.

§16A-5-8. Contents of identification card.

An identification card shall contain the following:

(1) The name of the caregiver or the patient, as
appropriate. The identification card shall also state whether the individual is
designated as a patient or as a caregiver.

(2) The date of issuance and expiration date.

(3) An identification number for the patient or
caregiver, as appropriate.

(4) A photograph of the individual to whom the
identification card is being issued, whether the individual is a patient or a
caregiver. The method of obtaining the photograph shall be specified by the
bureau by rule. The bureau shall provide reasonable accommodation for a patient
who is confined to the patient’s home or is in inpatient care.

(5) Any requirement or limitation set by the
practitioner as to the form of medical cannabis.

(6) Any other requirements determined by the bureau,
except the bureau may not require that an identification card disclose the
patient’s serious medical condition.

§16A-5-9. Suspension.

If a patient or caregiver intentionally, knowingly or
recklessly violates any provision of this act as determined by the bureau, the
identification card of the patient or caregiver may be suspended or revoked.
The suspension or revocation shall be in addition to any criminal or other
penalty that may apply.

§16A-5-10. Prohibitions.

The following prohibitions shall apply:

(1) A patient may not operate or be in physical
control of any of the following while under the influence with a blood content
of more than 3 nanograms of active tetrahydrocannabis per milliliter of blood
in serum:

(A) Chemicals which require a permit issued by the
Federal Government or a state government or an agency of the Federal Government
or a state government.

(B) High-voltage electricity or any other public
utility.

(C) Vehicle, aircraft, train, boat or heavy machinery.

(2) A patient may not perform any employment duties
at heights or in confined spaces, including, but not limited to, mining while
under the influence of medical cannabis.

(3) A patient may be prohibited by an employer from
performing any task which the employer deems life-threatening, to either the
employee or any of the employees of the employer, while under the influence of
medical cannabis. The prohibition shall not be deemed an adverse employment decision
even if the prohibition results in financial harm for the patient.

(4) A patient may be prohibited by an employer from
performing any duty which could result in a public health or safety risk while
under the influence of medical cannabis. The prohibition shall not be deemed an
adverse employment decision even if the prohibition results in financial harm
for the patient.

article 6. medical cannabis organizations.

§16A-6-1. Authorized medical cannabis organizations.

The following entities shall be authorized to receive a
permit to operate as a medical cannabis organization to grow, process or
dispense medical cannabis:

(1) Growers.

(2) Processors.

(3) Dispensaries.

§16A-6-2. Permits.

(a) Application. — An application for a
grower, processor or dispensary permit to grow, process or dispense medical
cannabis shall be in a form and manner prescribed by the bureau and shall
include:

(1) Verification of all principals, operators,
financial backers or employees of a medical cannabis grower/processor or
dispensary.

(2) A description of responsibilities as a
principal, operator, financial backer or employee.

(3) Any release necessary to obtain information from
governmental agencies, employers and other organizations.

(4) A criminal history record check. Medical
cannabis organizations applying for a permit shall submit fingerprints of
principals, financial backers, operators and employees to the West Virginia
State Police for the purpose of obtaining criminal history record checks and
the West Virginia State Police or its authorized agent shall submit the
fingerprints to the Federal Bureau of Investigation for the purpose of
verifying the identity of the principals, financial backers, operators and
employees and obtaining a current record of any criminal arrests and
convictions. Any criminal history record information relating to principals,
financial backers, operators and employees obtained under this section by the
bureau may be interpreted and used by the bureau only to determine the
principal’s, financial backer’s, operator’s and employee’s character, fitness
and suitability to serve as a principal, financial backer, operator and
employee under this act. This subdivision shall not apply to an owner of
securities in a publicly traded corporation if the bureau determines that the
owner of the securities is not substantially involved in the activities of the
medical cannabis organization.

(5) Details relating to a similar license, permit or
other authorization obtained in another jurisdiction, including any
suspensions, revocations or discipline in that jurisdiction.

(6) A description of the business activities in
which it intends to engage as a medical cannabis organization.

(7) A statement that the applicant:

(A) Is of good moral character. For purposes of this
subparagraph, an applicant shall include each financial backer, operator,
employee and principal of the medical cannabis organization.

(B) Possesses the ability to obtain in an
expeditious manner the right to use sufficient land, buildings and other
premises and equipment to properly carry on the activity described in the
application and any proposed location for a facility.

(C) Is able to maintain effective security and
control to prevent diversion, abuse and other illegal conduct relating to
medical cannabis.

(D) Is able to comply with all applicable State laws
and rules relating to the activities in which it intends to engage under this
act.

(8) The name, residential address and title of each
financial backer and principal of the applicant. Each individual, or lawful
representative of a legal entity, shall submit an affidavit with the
application setting forth:

(A) Any position of management or ownership during
the preceding ten years of a controlling interest in any other business,
located inside or outside this state, manufacturing or distributing controlled
substances.

(B) Whether the person or business has been
convicted of a criminal offense graded higher than a summary offense or has had
a permit relating to medical cannabis suspended or revoked in any
administrative or judicial proceeding.

(9) Any other information the bureau may require.

(b) Notice. — An application shall include
notice that a false statement made in the application is punishable under the
applicable provisions of law.

§16A-6-3. Granting of permit.

(a) The bureau may grant or deny a permit to a grower,
processor or dispensary. In making a decision under this subsection, the bureau
shall determine that:

(1) The applicant will maintain effective control of
and prevent diversion of medical cannabis.

(2) The applicant will comply with all applicable
laws of this state.

(3) The applicant is a resident of this state, or is organized
under the law of this state.

(4) The applicant is ready, willing and able to
properly carry on the activity for which a permit is sought.

(5) The applicant possesses the ability to obtain in
an expeditious manner sufficient land, buildings and equipment to properly
grow, process or dispense medical cannabis.

(6) It is in the public interest to grant the
permit.

(7) The applicant, including the financial backer or
principal, is of good moral character and has the financial fitness necessary
to operate.

(8) The applicant is able to implement and maintain
security, tracking, recordkeeping and surveillance systems relating to the
acquisition, possession, growth, manufacture, sale, delivery, transportation,
distribution or the dispensing of medical cannabis as required by the bureau.

(9) The applicant satisfies any other conditions as
determined by the bureau.

(b) Nontransferability. — A permit issued
under this chapter shall be nontransferable.

(c) Privilege. — The issuance or renewal of a
permit shall be a revocable privilege.

(d) Regions. — The bureau shall establish a
minimum of three regions within this state for the purpose of granting permits
to grower/processors and dispensaries and enforcing this act. The bureau shall
approve permits for growers, processors and dispensaries in a manner which will
provide an adequate amount of medical cannabis to patients and caregivers in
all areas of this State. The bureau shall consider the following when issuing a
permit:

(1) Regional population.

(2) The number of patients suffering from serious
medical conditions.

(3) The types of serious medical conditions.

(4) Access to public transportation.

(5) Approval by local health departments.

(6) Whether the county has disallowed the location of a
grower, processor or dispensary.

(7) Any other factor the bureau deems relevant.

§16A-6-4. Notice.

When the boundaries under subsection (d), section three of
this article are established, the bureau shall publish notice of the
determination in the State Register. The bureau may adjust the boundaries as
necessary every two years. Notice of any adjustment to the boundaries shall be
published in the State Register.

§16A-6-5. Application and issuance.

(a) Duty to report. — An applicant to be a
grower/processor or to operate a dispensary is under a continuing duty to:

(1) Report to the bureau any change in facts or
circumstances reflected in the application or any newly discovered or occurring
fact or circumstance which is required to be included in the application,
including a change in control of the medical cannabis organization.

(2) Report to law enforcement, within twenty-four
hours, any loss or theft of medical cannabis.

(3) Submit to announced or unannounced inspections
by the bureau of the facilities for growing, processing, dispensing or selling
medical cannabis, including all records of the organization.

(b) Additional information. — If the bureau
is not satisfied that the applicant should be issued a permit, the bureau shall
notify the applicant in writing of the factors for which further documentation
is required. Within thirty days of the receipt of the notification, the
applicant may submit additional material to the bureau.

§16A-6-6. Fees and other requirements.

The following apply:

(1) For a grower or processor:

(A) An initial application fee in the amount of
$5,000 shall be paid. The fee is nonrefundable.

(B) A fee for a permit as a grower/processor in the
amount of $50,000 shall be paid. The permit shall be valid for one year.
Applicants shall submit the permit fee at the time of submission of the
application. The fee shall be returned if the permit is not granted.

(C) A renewal fee for the permit as a
grower/processor in the amount of $5,000 shall be paid and shall cover renewal
for all locations. The renewal fee shall be returned if the renewal is not
granted.

(D) An application to renew a permit must be filed
with the bureau not more than six months nor less than four months prior to
expiration.

(E) All fees shall be paid by certified check or
money order.

(2) For a dispensary:

(A) An initial application fee in the amount of
$2,500 shall be paid. The fee is nonrefundable.

(B) A permit fee for a dispensary shall be $10,000
for each location. The period of the permit is one year. An applicant shall
submit the permit fee at the time of submission of the application. The fee
shall be returned if the application is not granted.

(C) A renewal fee for the permit as a dispensary in
the amount of $2,500 shall be paid. The fee shall be returned if the renewal is
not granted and shall cover renewal for all locations.

(D) An application to renew a permit must be filed
with the bureau not more than six months nor less than four months prior to
expiration.

(E) All fees shall be paid by certified check or
money order.

(3) A fee of $250 shall be required when amending
the application to indicate relocation within this state or the addition or
deletion of approved activities by the medical cannabis organization.

(4) Fees payable under this section shall be
deposited into the fund.

§16A-6-7. Issuance.

A permit issued by the bureau to a medical cannabis
organization shall be effective only for that organization and shall specify
the following:

(1) The name and address of the medical cannabis
organization.

(2) The activities of the medical cannabis
organization permitted under this act.

(3) The land, buildings, facilities or location to
be used by the medical cannabis organization.

(4) Any other information required by the bureau.

§16A-6-8. Relocation.

The bureau may approve an application from a medical
cannabis organization to relocate within this state or to add or delete
activities or facilities.

§16A-6-9. Terms of permit.

A permit issued by the bureau shall be valid for one year
from the date of issuance.

§16A-6-10. Permit renewals.

(a) Renewal. — An application for renewal
shall include the following information:

(1) Any material change in the information provided
by the medical cannabis organization in a prior application or renewal of a
permit.

(2) Any charge or initiated, pending or concluded
investigation, during the period of the permit, by any governmental or
administrative agency with respect to:

(A) Any incident involving the theft, loss or
possible diversion of medical cannabis grown, processed or dispensed by the
applicant; and

(B) Compliance by the applicant with the laws of
this state with respect to any substance listed under article two, chapter
sixty-a of this code.

(1) The applicant is unlikely to maintain or be able
to maintain effective control against diversion of medical cannabis.

(2) The applicant is unlikely to comply with all
laws of this state applicable to the activities in which it may engage under
the permit.

(c) Nonrenewal decision. — The denial or
nonrenewal shall specify in detail how the applicant has not satisfied the
bureau’s requirements for renewal. Within thirty days of the bureau’s decision,
the applicant may submit additional material to the bureau or demand a hearing,
or both. If a hearing is demanded, the bureau shall fix a date as soon as
practicable.

§16A-6-11. Suspension or revocation.

The bureau may suspend or revoke a medical cannabis
organization permit if:

(1) The bureau has evidence that the medical
cannabis organization has failed to maintain effective control against
diversion of medical cannabis.

(2) The organization violates any provision of this
act or a rule of the bureau.

(3) The organization has intentionally, knowingly,
recklessly or negligently failed to comply with applicable laws of this State
relating to medical cannabis.

§16A-6-12. Convictions prohibited.

(a) The following individuals may not hold volunteer
positions or positions with remuneration in or be affiliated with a medical
cannabis organization, including a clinical registrant under article fourteen
of this chapter, in any way if the individual has been convicted of any felony
criminal offense related to the sale or possession of illegal drugs, narcotics
or controlled substances, or conspiracy thereof:

(1) Financial backers.

(2) Principals.

(3) Employees.

(b) If an individual seeking to hold a volunteer position
or position with remuneration in or be affiliated with a dispensary is
otherwise prohibited under subsection (a) of this section, such individual may
seek a waiver from the bureau in order to hold such a position with a
dispensary. The allowance of the waiver, including any additional restrictions
or conditions as part of the waiver, shall be in the discretion of the bureau.

§16A-6-13. Limitations on permits.

(a) The following limitations apply to approval of permits
for growers, processors and dispensaries, subject to the limitations in
subsection (b) of this section:

(1) The bureau may not issue permits to more than
ten growers: Provided, That each grower may have up to two locations per
permit.

(2) The bureau may not issue permits to more than
ten processors.

(3) The bureau may not issue permits to more than
thirty dispensaries, with no more than five in any region.

(4) The bureau may not issue more than two
individual dispensary permits to one person.

(5) The bureau may not issue more than one
individual grower permit to one person.

(6) The bureau may not issue more than one individual
processor permit to one person.

(7) A dispensary may only obtain medical cannabis
from a grower or processor holding a valid permit under this act.

(8) A grower or processor may only provide medical
cannabis to a dispensary holding a valid permit under this act.

(9) A grower or a processor may not be a dispensary.

(b) Before a permit may be issued, the bureau shall obtain
the following:

(1) A written approval from the Board of Health for the
county in which the permit is to be located and operate business.

(2) A written statement from the county commission for the
county in which the permit is to be located and conduct business that the
County has not voted, pursuant to section six, article seven of this chapter to
disapprove a medical cannabis organization to be located or operate within the
county.

article 7. medical cannabis controls.

§16A-7-1. Electronic tracking.

(a) Requirement. — A medical cannabis
organization must implement an electronic inventory tracking system which shall
be directly accessible to the bureau through its electronic database that
electronically tracks all medical cannabis on a daily basis. The system shall
include tracking of all of the following:

(1) For a grower or processor, a seed-to-sale
tracking system that tracks the medical cannabis from seed to plant until the
medical cannabis is sold to a dispensary.

(2) For a dispensary, medical cannabis from purchase
from the grower/processor to sale to a patient or caregiver and that includes
information that verifies the validity of an identification card presented by
the patient or caregiver.

(3) For a medical cannabis organization, a daily log
of each day’s beginning inventory, acquisitions, amounts purchased and sold,
disbursements, disposals and ending inventory. The tracking system shall
include prices paid and amounts collected from patients and caregivers.

(4) For a medical cannabis organization, a system
for recall of defective medical cannabis.

(5) For a medical cannabis organization, a system to
track the plant waste resulting from the growth of medical cannabis or other
disposal, including the name and address of any disposal service.

(b) Additional requirements. — In addition to
the information under subsection (a) of this section, each medical cannabis
organization shall track the following:

(1) Security and surveillance.

(2) Recordkeeping and record retention.

(3) The acquisition, possession, growing and
processing of medical cannabis.

(4) Delivery and transportation, including amounts
and method of delivery.

(5) Dispensing, including amounts, pricing and
amounts collected from patients and caregivers.

(c) Access. — (1) Information maintained in
electronic tracking systems under subsection (a) of this section shall be
confidential and not subject to public disclosure under chapter twenty-nine-b
of this code.

(2) Pursuant to conditions and procedures established by
the bureau, law enforcement shall be provided access to the tracking system.

(d) Reports. — Within one year of the
issuance of the first permit to a medical cannabis organization, and every
three months thereafter in a form and manner prescribed by the bureau, the
following information shall be provided to the bureau, which shall compile the
information and post it on the bureau’s publicly accessible Internet website:

(1) The amount of medical cannabis sold by a grower
and a processor during each three-month period.

(2) The price of amounts of medical cannabis sold by
growers and processors as determined by the bureau.

(3) The amount of medical cannabis purchased by each
dispensary in this state.

(4) The cost of amounts of medical cannabis to each
dispensary in amounts as determined by the bureau.

(5) The total amount and dollar value of medical
cannabis sold by each dispensary in the three-month period.

§16A-7-2. Grower/processors.

(a) Authorization. — Subject to subsection
(b), a grower or processor may do all of the following in accordance with
bureau rules:

(1) Obtain seed from outside this state to initially
grow medical cannabis.

(2) Obtain seed and plant material from another
grower/processor within this state to grow medical cannabis.

(b) Limitations. — A grower or processor may
only grow, store, harvest or process medical cannabis in an indoor, enclosed,
secure facility which:

(1) Includes electronic locking systems, electronic
surveillance and other features required by the bureau; and

(2) Is located within this state.

§16A-7-3. Storage and transportation.

The bureau shall develop rules relating to the storage and
transportation of medical cannabis among grower/processors, testing laboratories
and dispensaries which ensure adequate security to guard against in-transit
losses. The tracking system developed by the bureau shall include all
transportation and storage of medical cannabis. The rules shall provide for the
following:

(1) Requirements relating to shipping containers and
packaging.

(2) The manner in which trucks, vans, trailers or
other carriers will be secured.

(3) Security systems that include a numbered seal on
the trailer.

(4) Obtaining copies of drivers’ licenses and registrations
and other information related to security and tracking.

(5) Use of GPS systems.

(6) Number of drivers or other security required to
ensure against storage or in-transit losses.

(7) Recordkeeping for delivery and receipt of
medical cannabis products.

(8) Requirements to utilize any electronic tracking
system required by the bureau.

A grower and processor shall contract with an independent
laboratory to test the medical cannabis produced by the grower or processor.
The bureau shall approve the laboratory and require that the laboratory report
testing results in a manner as the bureau shall determine, including requiring
a test at harvest and a test at final processing. The possession by a
laboratory of medical cannabis shall be a lawful use.

§16A-7-5. Prices.

The bureau and the Department of Revenue shall monitor the
price of medical cannabis sold by growers, processors and by dispensaries,
including a per-dose price. If the bureau and the Department of Revenue
determine that the prices are unreasonable or excessive, the bureau may
implement a cap on the price of medical cannabis being sold for a period of six
months. The cap may be amended during the six-month period. If the bureau and
the Department of Revenue determine that the prices become unreasonable or
excessive following the expiration of a six-month cap, additional caps may be
imposed for periods not to exceed six months.

§16A-7-6. County prohibition.

A county may pass an ordinance by vote of the residents of
the county to prohibit the operation or location of a medical cannabis
organization within that particular county. A prohibition under this section
shall remain in effect unless and until changed by a subsequent vote.

article 8. dispensaries.

§16A-8-1. Dispensing to patients and caregivers.

(a) General rule. — A dispensary that has
been issued a permit under article six of this chapter may lawfully dispense
medical cannabis to a patient or caregiver upon presentation to the dispensary
of a valid identification card for that patient or caregiver. The dispensary
shall provide to the patient or caregiver a receipt, as appropriate. The
receipt shall include all of the following:

(1) The name, address and any identification number
assigned to the dispensary by the bureau.

(2) The name and address of the patient and
caregiver.

(3) The date the medical cannabis was dispensed.

(4) Any requirement or limitation by the
practitioner as to the form of medical cannabis for the patient.

(5) The form and the quantity of medical cannabis
dispensed.

(b) Requirements. — A dispensary shall have a
physician or a pharmacist onsite at all times during the hours the dispensary
is open to receive patients and caregivers. A physician or a pharmacist shall,
prior to assuming duties under this paragraph, successfully complete the course
established in subsection (a), section one, article three of this chapter. A
physician may not issue a certification to authorize patients to receive
medical cannabis or otherwise treat patients at the dispensary.

(c) Filing with bureau. — Prior to dispensing
medical cannabis to a patient or caregiver, the dispensary shall file the
receipt information with the bureau utilizing the electronic tracking system.
When filing receipts under this subsection, the dispensary shall dispose of any
electronically recorded certification information as provided by rule.

(d) Limitations. — No dispensary may dispense
to a patient or caregiver:

(1) A quantity of medical cannabis greater than that
which the patient or caregiver is permitted to possess under the certification;
or

(2) A form of medical cannabis prohibited by this
act.

(e) Supply. — When dispensing medical
cannabis to a patient or caregiver, the dispensary may not dispense an amount
greater than a 30-day supply until the patient has exhausted all but a
seven-day supply provided pursuant to section five, article four of this
chapter.

(f) Verification. — Prior to dispensing
medical cannabis to a patient or caregiver, the dispensary shall verify the
information in subsections (e) and (g) of this section by consulting the
electronic tracking system included in the bureau’s electronic database
established under section one, article three of this chapter and the dispensary
tracking system under section one, article seven of this chapter.

(g) Form of medical cannabis. — Medical
cannabis dispensed to a patient or caregiver by a dispensary shall conform to
any requirement or limitation set by the practitioner as to the form of medical
cannabis for the patient.

(h) Safety insert. — When a dispensary
dispenses medical cannabis to a patient or caregiver, the dispensary shall
provide to that patient or caregiver, as appropriate, a safety insert. The
insert shall be developed and approved by the bureau. The insert shall provide
the following information:

(3) How to recognize what may be problematic usage
of medical cannabis and how to obtain appropriate services or treatment for
problematic usage.

(4) How to prevent or deter the misuse of medical
cannabis by minors or others.

(5) Any other information as determined by the
bureau.

(i) Sealed and labeled package. — Medical
cannabis shall be dispensed by a dispensary to a patient or caregiver in a
sealed, properly labeled and child-resistant package. The labeling shall
contain the following:

(1) The information required to be included in the
receipt provided to the patient or caregiver, as appropriate, by the
dispensary.

(2) The packaging date.

(3) Any applicable date by which the medical
cannabis should be used.

(4) A warning stating:

“This product is for medicinal use only. Women should not
consume during pregnancy or while breastfeeding except on the advice of the
practitioner who issued the certification and, in the case of breastfeeding,
the infant’s pediatrician. This product might impair the ability to drive or
operate heavy machinery. Keep out of reach of children.”

(5) The amount of individual doses contained within
the package and the species and percentage of tetrahydrocannabinol and
cannabidiol.

(6) A warning that the medical cannabis must be kept
in the original container in which it was dispensed.

(7) A warning that unauthorized use is unlawful and
will subject the person to criminal penalties.

(8) Any other information required by the bureau.

§16A-8-2. Facility requirements.

(a) General rule. —

(1) A dispensary may only dispense medical cannabis
in an indoor, enclosed, secure facility located within this state, as
determined by the bureau.

(2) A dispensary may not operate on the same site as
a facility used for growing and processing medical cannabis.

(3) A dispensary may not be located within one
thousand feet of the property line of a public, private or parochial school or
a daycare center.

(4) A dispensary may, pursuant to bureau conditions
and limitations, sell medical devices and instruments which are needed to
administer medical cannabis under this act.

(b) Adjustment or waiver of prohibition. — The
bureau may amend a prohibition under subsection (a)(3) of this section if it is
shown by clear and convincing evidence that the amendment is necessary to
provide adequate access to patients. An amendment may include additional
security, physical plant of a facility or other conditions necessary to protect
children.

§16A-8-3. Posting.

A dispensary shall post a copy of its permit in a location
within its facility in a manner that is easily observable by patients,
caregivers, law enforcement officers and agents of the bureau.

article 9. tax on medical cannabis.

§16A-9-1. Tax on medical cannabis.

(a) Tax imposed. — A tax is imposed on the
gross receipts of a grower/processor received from the sale of medical cannabis
by a grower/processor to a dispensary, to be paid by the grower/processor, at
the rate of ten percent. The tax shall be charged against and be paid by the
grower/processor and shall not be added as a separate charge or line item on
any sales slip, invoice, receipt or other statement or memorandum of the price
paid by a dispensary, patient or caregiver.

(b) Payment of tax and reports. — A
grower/processor shall make quarterly payments under this section for each
calendar quarter at the rate prescribed in subsection (a) on the gross receipts
for the calendar quarter. The tax shall be due and payable on the 20th day of
January, April, July and October for the preceding calendar quarter on a form
prescribed by the Department of Revenue.

(c) Deposit of proceeds. — All money
received from the tax imposed under subsection (a) shall be deposited into the
fund.

(d) Exemption. — Medical cannabis shall not
be subject to a sales tax.

(e) Information. — A grower/processor that
sells medical cannabis shall provide to the Department of Revenue information
required by the bureau.

§16A-9-2. Medical Cannabis Program Fund.

(a) Fund established. — The Medical Cannabis
Program Fund is established as a special fund in the State Treasury. Money in
the fund is appropriated as set forth in subsection (c) of this section. Any
amount unspent at the end of a fiscal year shall be appropriated to the bureau
for its operations.

(b) Source of funds. — Fees and taxes payable
under this act shall be deposited into the fund. The money deposited into the
fund may only be used for the purposes set forth in this section. Any interest
accrued shall be deposited into the fund.

(c) Use of proceeds. — Money in the fund is
allocated in accordance with the following percentages:

(1) Fifty-five percent of the revenue in the fund
shall be allocated to the bureau.

(2) The remaining forty-five percent of the revenue
in the fund shall be allocated as follows:

(A) Fifty percent shall be allocated to the Fight
Substance Abuse Fund created by section eight, article nine, chapter sixty-a of
the code.

(B) Forty percent shall be allocated to the Division of
Justice and Community Services, for grants to local law enforcement agencies
for training, drug diversion, and other programs focused on crime and
addiction, pursuant to and in accordance with the provisions of article nine-a,
chapter fifteen of this code.

(C) Ten percent shall be allocated to the fund created in
section four, article twenty-nine, chapter thirty, to be used for law
enforcement professional training and professional development programs.

article 10. administration.

§16A-10-1. Administration.

The Commissioner of the Bureau for Public Health may
establish and create an Office of Medical Cannabis within the bureau to assist
in the administration and enforcement of the provisions of this act.

§16A-10-2. Reports by medical cannabis organizations.

A medical cannabis organization shall periodically file
reports related to its activities. The bureau shall determine the information
required in and the frequency of filing the reports.

§16A-10-3. Law-enforcement notification.

Notwithstanding any provision of this act or any other law
to the contrary, the bureau may notify any appropriate law-enforcement agency
of information relating to any violation or suspected violation of this act. In
addition, the bureau shall verify to law-enforcement personnel in an
appropriate case whether a certification, permit, registration or an
identification card is valid, including release of the name of the patient.

§16A-10-4. Evaluation.

The bureau may provide for an analysis and evaluation of
the implementation and effectiveness of this act. The bureau may enter into
agreements with one or more persons for the performance of an evaluation of the
implementation and effectiveness of this act.

§16A-10-5. Report.

(a) Report required. — The bureau shall
submit a written report under subsection (b) of this section every two years,
beginning two years after the effective date of this section, to the following:

(1) The Governor.

(2) The Joint Committee on Government and Finance.

(3) The Attorney General of the State.

(b) Contents of report. — The following
information shall be included in the report:

(1) An assessment of the use of medical cannabis as
a result of the enactment of this act.

(2) An assessment of the benefits and risks to
patients using medical cannabis under this act, including adverse events.

(3) Recommendations for amendments to this act for
reasons of patient safety or to aid the general welfare of the citizens of this
state.

§16A-10-6. Emergency rules.

(a) Promulgation. — In order to facilitate
the prompt implementation of this act, the bureau may promulgate emergency
rules that shall expire not later than two years following the publication of
the emergency rule.

(b) Expiration. — The bureau’s authority to
adopt emergency rules under subsection (a) of this section shall expire two
years after the effective date of this section. Rules adopted after this period
shall be promulgated as provided by law.

(c) Publication. — The bureau shall begin
publishing emergency rules in the State Register no later than six months after
the effective date of this section.

article 11. medical cannabis advisory board.

§16A-11-1. Advisory board.

(a) The Medical Cannabis Advisory Board is
established within the bureau. The advisory board shall consist of the
following members:

(1) The commissioner or a designee.

(2) The Superintendent of the West Virginia State
Police or a designee.

(3) Four physicians
licensed to practice in the state to be appointed by the State Medical
Association with one from each of the following specialized medicine:

(A) Family
Practice/Neurologist/General Practitioner.

(B) Pain
Management.

(C)
Oncologist/Palliative Care.

(D) Psychiatrist.

(4) One pharmacist licensed to practice in the state, to
be designated by the Board of Pharmacy.

(5) One pharmacologist who has experience in the science
of cannabis and a knowledge of the uses, effects, and modes of actions of
drugs, to be appointed by the Governor.

(6) One member who is a horticulturalist, to be designated
by the West Virginia Commissioner of Agriculture.

(7) One member designated by the West Virginia Association
of Alcoholism and Drug Counselors.

(8) An attorney licensed in the state who is knowledgeable
about medical cannabis laws.

(9) One member appointed by the West Virginia Prosecuting
Attorneys Institute.

(10) One member appointed by the Governor, who shall be a
patient, a family or household member of a patient or a patient advocate.

(b) Terms. — Except as provided under
subsection (g) of this section, the members shall serve a term of four years or
until a successor has been appointed and qualified, but no longer than six
months beyond the four-year period.

(c) Chair. — The commissioner, or a designee,
shall serve as chair of the advisory board.

(d) Voting; quorum. — A majority of the
members shall constitute a quorum for the purpose of organizing the advisory
board, conducting its business and fulfilling its duties. A vote of the
majority of the members present shall be sufficient for all actions of the
advisory board unless the bylaws require a greater number.

(e) Attendance. — A member of the advisory
board who fails to attend three consecutive meetings shall be deemed vacant,
unless the commissioner, upon written request from the member, finds that the
member should be excused from a meeting for good cause. A member who cannot be
physically present may attend meetings via electronic means, including video
conference.

(f) Governance. — The advisory board shall
have the power to prescribe, amend and repeal bylaws governing the manner in
which the business of the advisory board is conducted and the manner in which
the duties granted to it are fulfilled. The advisory board may delegate
supervision of the administration of advisory board activities to an
administrative commissioner and other employees of the bureau as the
commissioner shall appoint.

(g) Initial terms. — The initial terms of
members appointed under shall be for terms of one, two, three or four years,
the particular term of each member to be designated by the commissioner at the
time of appointment. All other members shall serve for a term of four years.

(h) Vacancy. — In the event that any member
appointed under subsection (a) of this section shall die or resign or otherwise
become disqualified during the member’s term of office, a successor shall be
appointed in the same way and with the same qualifications as set forth in this
section and shall hold office for the unexpired term. An appointed member of
the advisory board shall be eligible for reappointment.

(i) Expenses. — A member shall receive the
amount of reasonable travel, hotel and other necessary expenses incurred in the
performance of the duties of the member in accordance with state rules, but
shall receive no other compensation for the member’s service on the board.

(j) Duties. — The advisory board shall have
the following duties:

(1) To examine and analyze the statutory and
regulatory law relating to medical cannabis within this state.

(2) To examine and analyze the law and events in
other states and the nation with respect to medical cannabis.

(3) To accept and review written comments from
individuals and organizations about medical cannabis.

(4) To issue two years after the effective date of
this section a written report to the Governor, the Senate and the House of
Delegates.

(5) The written report under subdivision (4) shall
include recommendations and findings as to the following:

(A) Whether to change the types of medical
professionals who can issue certifications to patients.

(B) Whether to change, add or reduce the types of
medical conditions which qualify as serious medical conditions under this act.

(C) Whether to change the form of medical cannabis
permitted under this act.

(D) Whether to change, add or reduce the number of
growers, processors or dispensaries.

(E) How to ensure affordable patient access to
medical cannabis.

(F) Whether to permit medical cannabis to be
dispensed in dry leaf or plant form, for administration by vaporization.

(6) The final written report under this section
shall be adopted at a public meeting.

§16A-11-2. Rules based on recommendations of advisory
board.

After receiving the report of the advisory board, at the
discretion of the commissioner, the bureau may propose rules for legislative
promulgation pursuant to the provisions of article three, chapter twenty-nine-a
of this code to effectuate recommendations made by the advisory board. The
commissioner shall issue notice in the State Register within twelve months of
the receipt of the report of the advisory board. The notice shall include the
recommendations of the advisory board and shall state the specific reasons for
the decision of the commissioner on whether or not to effectuate each
recommendation.

article 12. offenses related to medical cannabis.

§16A-12-1. Criminal diversion of medical cannabis by
practitioners.

In addition to any other penalty provided by law, a
practitioner who intentionally and knowingly certifies a person as being able
to lawfully receive medical cannabis or who otherwise provides medical cannabis
to a person who is not lawfully permitted to receive medical cannabis, is
guilty of a felony, and upon conviction thereof, shall be imprisoned in a state
correctional facility for not less than one nor more than five years.

§16A-12-2. Criminal diversion of medical
cannabis.

(a) In addition to any other penalty provided by law, any
employee, financial backer, operator or principal of any qualifying entities
who intentionally and knowingly sells, dispenses, trades, delivers or otherwise
provides medical cannabis to a person who is not lawfully permitted to receive
medical cannabis, is guilty of a felony, and upon conviction thereof, shall be
imprisoned in a state correctional facility for not less than one nor more than
five years.

(b) For purposes of this section, “qualifying entity”
shall mean:

(1) A medical cannabis organization.

(2) A health care medical cannabis organization or
university participating in a research study under article thirteen of this chapter.

(3) A clinical registrant or academic clinical
research center under article fourteen of this chapter.

(4) A laboratory utilized to test medical cannabis
under section four, article seven of this chapter.

§16A-12-3. Criminal retention of medical
cannabis.

In addition to any other penalty provided by law, any
patient or caregiver who intentionally and knowingly possesses, stores or
maintains an amount of medical cannabis in excess of the amount legally
permitted is guilty of a misdemeanor, and upon conviction thereof, shall be
confined in jail for not more than six months.

§16A-12-4. Criminal diversion of medical cannabis by
patient or caregiver.

In addition to any other penalty provided by law, any
patient or caregiver that intentionally and knowingly provides medical cannabis
to a person who is not lawfully permitted to receive medical cannabis is guilty
of a felony, and upon conviction thereof, shall be imprisoned in a state
correctional facility for not less than one nor more than five years.

§16A-12-5. Falsification of identification cards.

In addition to any other penalty provided by law, any
person who commits one of the following, knowing he or she is not privileged to
hold an identification card;

(1) possesses an identification card and either
attempts to use the card to obtain medical cannabis or obtains medical
cannabis;

(2) possesses an identification card which falsely
identifies the person as being lawfully entitled to receive medical cannabis
and either attempts to use the card to obtain medical cannabis or obtains
medical cannabis; or

(3) possesses an identification card which contains
any false information on the card and the person either attempts to use the
card to obtain medical cannabis or obtains medical cannabis, is guilty of a
misdemeanor, and upon conviction thereof, shall be confined in jail for not
more than twelve months.

§16A-12-6. Adulteration of medical cannabis.

In addition to any other penalty provided by law, any
person who adulterates, fortifies, contaminates or changes the character or
purity of medical cannabis from that set forth on the patient’s or caregiver’s
identification card, is guilty of a felony, and upon conviction thereof, shall
be imprisoned in a state correctional facility for not less than one nor more
than five years.

§16A-12-7. Disclosure of information prohibited.

(a) In addition to any other penalty provided by law, any
employee, financial backer, operator or principal who discloses, except to
authorized persons for official governmental or health care purposes, any
information related to the use of medical cannabis:

(1) A medical cannabis organization.

(2) A health care medical cannabis organization or
university participating in a research study under article thirteen of this
chapter.

(3) A clinical registrant or academic clinical
research center under article fourteen of this chapter.

(4) An employee of the bureau.

(b) Exception. — Subsection (a) of this section
shall not apply where disclosure is permitted or required by law or by court
order.

§16A-12-8. Additional penalties.

(a) Civil penalties. — In addition to any
other remedy available to the bureau, the bureau may assess a civil penalty for
a violation of this act, a rule promulgated under this act or an order issued
under this act or rule, subject to the following:

(1) The bureau may assess a penalty of not more than
$10,000 for each violation and an additional penalty of not more than $1,000
for each day of a continuing violation. In determining the amount of each
penalty, the bureau shall take the following factors into consideration:

(A) The gravity of the violation.

(B) The potential harm resulting from the violation
to patients, caregivers or the general public.

(C) The willfulness of the violation.

(D) Previous violations, if any, by the person being
assessed.

(E) The economic benefit to the person being
assessed for failing to comply with the requirements of this act, a rule promulgated
under this act or an order issued under this act or rule.

(2) If the bureau finds that the violation did not
threaten the safety or health of a patient, caregiver or the general public and
the violator took immediate action to remedy the violation upon learning of it,
the bureau may issue a written warning in lieu of assessing a civil penalty.

(3) A person who aids, abets, counsels, induces,
procures or causes another person to violate this act, a rule promulgated under
this act or an order issued under this act or rule shall be subject to the
civil penalties provided under this subsection.

(b) Sanctions. —

(1) In addition to the penalties provided in
subsection (a) of this section, and any other penalty authorized by law, the
bureau may impose the following sanctions:

(A) Revoke or suspend the permit of a person found
to be in violation of this act, a rule promulgated under this act or an order
issued under this act or rule.

(B) Revoke or suspend the permit of a person for
conduct or activity or the occurrence of an event that would have disqualified
the person from receiving the permit.

(C) Revoke or suspend the registration of a
practitioner for a violation of this act or a rule promulgated or an order
issued under this act or for conduct or activity which would have disqualified
the practitioner from receiving a registration.

(D) Suspend a permit or registration of a person
pending the outcome of a hearing in a case in which the permit or registration
could be revoked.

(E) Order restitution of funds or property
unlawfully obtained or retained by a permittee or registrant.

(F) Issue a cease and desist order.

(2) A person who aids, abets, counsels, induces,
procures or causes another person to violate this act shall be subject to the
sanctions provided under this subsection.

(c) Costs of action. — The bureau may assess
against a person determined to be in violation of this act the costs of
investigation of the violation.

(d) Minor violations. — Nothing in this
section shall be construed to require the assessment of a civil penalty or the
imposition of a sanction for a minor violation of this act if the bureau
determines that the public interest will be adequately served under the
circumstances by the issuance of a written warning.

§16A-12-9. Other restrictions.

This act does not permit any person to engage in and does
not prevent the imposition of any civil, criminal or other penalty for the
following:

(1) Undertaking any task under the influence of
medical cannabis when doing so would constitute negligence, professional
malpractice or professional misconduct.

(2) Possessing or using medical cannabis in a state
correctional facility or Regional Jail Authority facility, including a facility
owned or operated or under contract with the Bureau of Corrections or the Regional
Jail Authority, which houses inmates serving a portion of their sentences on
parole or other community correction program.

(3) Possessing or using medical cannabis in a youth
detention center or other facility which houses children adjudicated
delinquent, including the separate, secure state-owned facility or unit
utilized for sexually violent delinquent children.

article 13. research program.

§16A-13-1. Definitions.

(a) The following words and phrases when used in this
chapter shall have the meanings given to them in this section unless the
context clearly indicates otherwise:

(1) “Health care medical cannabis organization”. A
vertically integrated health system approved by the bureau to dispense medical
cannabis or grow and process medical cannabis, or both, in accordance with a
research study under this chapter.

(2) “Vertically integrated health system”. A health
delivery system in which the complete spectrum of care, including primary and
specialty care, hospitalization and pharmaceutical care, is provided within a
single organization.

§16A-13-2. Establishment of medical cannabis
research program.

(a) Program to be established. — The bureau
shall establish and develop a research program to study the impact of medical
cannabis on the treatment and symptom management of serious medical conditions.
The program shall not include a clinical registrant or academic clinical
research center under article fourteen of this chapter.

(b) Bureau duties. — The bureau shall:

(1) Review all serious medical conditions which are
cited by a practitioner upon the practitioner’s certification that a patient be
granted an identification card.

(2) Create a database of all serious medical
conditions, including comorbidities, which are cited by practitioners in the
certifications of patients. The database shall also include the form of medical
cannabis certified to treat each serious medical condition.

(3) When the database contains twenty-five or more
patients with the same serious medical condition, petition the United States
Food and Drug Administration and the United States Drug Enforcement
Administration for approval to study the condition and the impact of medical
cannabis on the condition.

(4) Concurrent with the request to the United States
Food and Drug Administration and United States Drug Enforcement Administration,
publicly announce the formation of a research study to which a vertically
integrated health system and a university within this state may submit a
request to participate.

(5) Upon approval of a research study by the United
States Food and Drug Administration and the United States Drug Enforcement
Administration, select a vertically integrated health system or systems to
conduct the research study and designate the form or forms of medical cannabis
which will be used to treat the serious medical condition.

(6) Notify a patient who has been issued an
identification card:

(A) that the patient has been selected to
participate, at the patient’s option, in a research study to study medical
cannabis as a treatment; and

(B) where the patient may secure medical cannabis
through a health care medical cannabis organization at no cost to the patient
in accordance with subsection (c).

(7) If the United States Food and Drug
Administration and the United States Drug Enforcement Administration reject the
proposal for the research study, take all reasonable steps to collect and
collate data on the serious medical condition and the use of medical cannabis
as a treatment for the serious medical condition and consider submitting an
additional request to the United States Food and Drug Administration and United
States Drug Enforcement Administration for a research study on the same
condition.

(c) Costs. — The cost of the medical cannabis
which is dispensed to patients in accordance with an approved research study
shall be paid for by the fund.

(d) Geographic accessibility. — The bureau
shall take into consideration the geographic location of the health care
medical cannabis organization when assigning a patient to a health care medical
cannabis organization. The bureau shall make an effort to assign a patient to a
health care medical cannabis organization that is located within fifty miles of
the patient’s residence.

(e) Data. — Data collected by the health care
medical cannabis organization shall be provided to the university participating
in the research study for analysis.

§16A-13-3. Medical cannabis research program administration.

(a) The bureau may establish a research study for
each serious medical condition. The bureau may engage universities within this
state to participate in the collection, collation, analysis and conclusive
findings of the research studies. The bureau shall, by rule, establish the
procedure to be used by health care medical cannabis organizations with respect
to:

(1) Real time inventory tracking.

(2) Real time tracking of the medical cannabis
dispensed.

(3) Recall of defective medical cannabis.

(b) Request for distributions. — The bureau
shall establish a form and procedure for universities selected to participate
in a research study to request distributions from the fund to conduct research
on medical cannabis, including administrative costs. These distributions shall
also be used to pay for the cost of the medical cannabis so that it is not
borne by the patient participating in the research study. The forms shall
include, at a minimum, the following:

(1) The form or forms of medical cannabis to be
studied.

(2) The serious medical condition to be studied.

(c) Research reports. —

(1) A vertically integrated health system shall
report on the effectiveness of the use of medical cannabis for the treatment of
the serious medical condition studied and all counterindications and noted side
effects.

(2) The bureau shall notify the vertically
integrated health system and the university participating in the research study
of the data which is required to meet the United States Food and Drug
Administration’s and the United States Drug Enforcement Administration’s
approval for the research study.

(3) The first report, including the data required
under subdivision (2), shall be submitted to the bureau and made publicly
available within one hundred eighty days of the initiation of a research study
for a specific serious medical condition.

(4) An annual report of the data required under
subdivision (2) shall be submitted to the bureau beginning one year after the
initiation of a research study for a specific serious medical condition and
each year thereafter.

§16A-13-4. Approval.

A vertically integrated health system located in this state
may petition the bureau to participate in a research study to study a serious
medical condition. Approval of the vertically integrated health system as a
health care medical cannabis organization by the bureau shall authorize access
within a region under subsection (d), section three, article six of this
chapter to medical cannabis for all patients included in an approved research
study.

(2) Secure the medical cannabis within the
associated pharmacies of the health care medical cannabis organization in a
manner and method prescribed by the bureau.

(3) Keep a daily log of the medical cannabis
dispensed and the research study with which the patient and the medical
cannabis are associated. Reports shall be delivered to the bureau and the
university participating in the research study on a weekly basis.

(4) Report the utilization rates of those patients
participating in the research of medical cannabis and treatment options.

(5) Only dispense medical cannabis received from a
grower, processor or a health care medical cannabis organization that is
approved to grow and process medical cannabis.

(6) Provide all patients or caregivers with the
safety insert, prepared by the bureau, which includes potential dangers,
recognition and correction of problematic dosage and any other information
required by the bureau or which the bureau deems relevant for patient safety.

(2) Only make available medical cannabis to health
care medical cannabis organizations that dispense medical cannabis.

(3) Keep a daily log of medical cannabis intended
for ultimate use by patients participating in a research study.

§16A-13-6. Restrictions.

A health care medical cannabis organization may not
participate in a research study of any kind, including the program established
under this article, or dispense or grow and process medical cannabis if it has
violated its licensure requirements or conditions.

§16A-13-7. Rules.

The bureau shall, by rule, establish the procedure to be
used by a health care medical cannabis organization that grows and processes
medical cannabis with respect to:

(1) Real time inventory tracking, including a
seed-to-dispensing tracking system that tracks medical cannabis from seed or
immature plant stage until the medical cannabis is provided to a patient in a
research study.

(2) Security, recordkeeping, record retention and
surveillance systems relating to every stage of growing and processing medical
cannabis.

(5) A system to track the plant waste resulting from
the growth of medical cannabis.

(6) Testing of medical cannabis by an independent
laboratory to test the medical cannabis produced by the health care medical
cannabis organization, including requiring a test at harvest and a test at
final processing.

(7) Any other procedure deemed necessary by the
bureau.

§16A-13-8. Nonentitlement.

Nothing in this chapter shall be construed to create an
entitlement or right of a patient to receive medical cannabis or to participate
in a research study.

article 14. acAdemic clinical research centers.

§16A-14-1. Definitions.

The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the context
clearly indicates otherwise:

(1) “Academic clinical research center” means an
accredited medical school within this state that operates or partners with an
acute care hospital licensed within this state.

(2) “Clinical registrant” means an entity that:

(A) Holds a permit as a grower, processor and a
dispensary; and

(B) Has a contractual relationship with an academic
clinical research center under which the academic clinical research center or
its affiliate provides advice to the entity, regarding, among other areas,
patient health and safety, medical applications and dispensing and management
of controlled substances.

§16A-14-2. Clinical registrants.

Notwithstanding the limitations in section thirteen,
article six of this chapter, the bureau may register up to four clinical
registrants, and subject to the following:

(1) A clinical registrant must pay the fees and meet
all other requirements under this act for obtaining a permit as a grower, processor
and a dispensary.

(2) The clinical registrant must comply with all
other requirements of this act regarding growing, processing and dispensing
medical cannabis.

§16A-14-3. Research study.

Notwithstanding any provision of this act to the contrary,
the bureau may, upon application, approve the dispensing of medical cannabis by
a clinical registrant to the academic clinical research center for the purpose
of conducting a research study. The bureau shall develop the application and
standards for approval of such dispensing by the clinical registrant. The
following apply to the research study:

(1) The clinical registrant shall disclose the
following information to the bureau in its application:

(i) The reason for the research project, including
the reason for the trial.

(ii) The strain of medical cannabis to be used and
the strength of the medical cannabis to be used in the research study.

(iii) The anticipated duration of the study.

(iv) Evidence of approval of the trial by an
accredited institutional review board, including any other required regulatory
approvals.

(v) Other information required by the bureau, except
that the bureau may not require disclosure of any information that would
infringe upon the academic clinical research center’s exclusive right to
intellectual property or legal obligations for patient confidentiality.

(2) The academic clinical research center shall
provide its findings to the bureau within three hundred sixty-five days of the
conclusion of the research study or within three hundred sixty-five days of
publication of the results of the research study in a peer-reviewed medical
journal, whichever is later.

(3) The bureau shall allow the exchange of medical
cannabis seed between clinical registrants for the conduct of research.

article 15. miscellaneous provisions.

§16A-15-1. Conflict.

The growth, processing, manufacture, acquisition,
transportation, sale, dispensing, distribution, possession and consumption of
medical cannabis permitted under this act shall not be deemed to be a violation
of the provisions of the Uniform Controlled Substance Act under chapter sixty-a
of this code. If a provision of Uniform Controlled Substance Act under chapter
sixty-a relating to cannabis conflicts with a provision of this act, this act
shall take precedence.

§16A-15-2. Financial and employment interests.

(a) Financial interests. — A public official,
or an immediate family member thereof, shall not intentionally or knowingly
hold a financial interest in a medical cannabis organization or in a holding
company, affiliate, intermediary or subsidiary thereof, while the individual is
a public official and for one year following termination of the individual’s
status as a public official.

(b) Employment. — No public official, or an
immediate family member thereof, shall be employed by a medical cannabis
organization or by any holding company, affiliate, intermediary or subsidiary
thereof, while the individual is a public official and for one year following
termination of the individual’s status as a public official.

(c) For purposes of this section, “public official” and
“immediate family” shall have the same definitions as those phrases are defined
in section three, article one, chapter six-b of this code.

§16A-15-3. Insurers.

Nothing in this act shall be construed to require an
insurer or a health plan, whether paid for by state funds or private funds, to
provide coverage for medical cannabis.

§16A-15-4. Protections for patients and
caregivers.

(a) Licensure. — None of the following shall
be subject to arrest, prosecution or penalty in any manner, or denied any right
or privilege, including civil penalty or disciplinary action by a state
licensing board or commission, solely for lawful use of medical cannabis or
manufacture or sale or dispensing of medical cannabis, or for any other action
taken in accordance with this act:

(1) A patient.

(2) A caregiver.

(3) A practitioner.

(4) A medical cannabis organization.

(5) A health care medical cannabis organization or
university participating in a research study under article thirteen of this
chapter.

(6) A clinical registrant or academic clinical
research center under article fourteen of this chapter.

(7) An employee, principal or financial backer of a
medical cannabis organization.

(8) An employee of a health care medical cannabis
organization or an employee of a university participating in a research study
under article thirteen of this chapter.

(9) An employee of a clinical registrant or an
employee of an academic clinical research center under article fourteen of this
chapter.

(b) Employment. —

(1) No employer may discharge, threaten, refuse to hire
or otherwise discriminate or retaliate against an employee regarding an
employee’s compensation, terms, conditions, location or privileges solely on
the basis of such employee’s status as an individual who is certified to use
medical cannabis.

(2) Nothing in this act shall require an employer to
make any accommodation of the use of medical cannabis on the property or
premises of any place of employment. This act shall in no way limit an employer’s
ability to discipline an employee for being under the influence of medical
cannabis in the workplace or for working while under the influence of medical
cannabis when the employee’s conduct falls below the standard of care normally
accepted for that position.

(3) Nothing in this act shall require an employer to
commit any act that would put the employer or any person acting on its behalf
in violation of federal law.

§16A-15-5. Schools.

The Department of Education shall promulgate rules within
six months of the effective date of this section regarding the following:

(1) Possession and use of medical cannabis by a
student on the grounds of a preschool, primary school and a secondary school.

(2) Possession and use of medical cannabis by an
employee of a preschool, primary school and a secondary school on the grounds
of such school.

§16A-15-6. Daycare centers.

The Bureau shall promulgate rules within six months of the
effective date of this section regarding the following:

(1) Possession and use of medical cannabis by a
child under the care of a child-care or social service center licensed or
operated by the Department of Health and Human Resources.

(2) Possession and use of medical cannabis by an
employee of a child-care or social service center licensed or operated by the Department
of Health and Human Resources.

(3) Possession and use of medical cannabis by
employees of a youth development center or other facility which houses children
adjudicated delinquent.

§16A-15-7. Zoning.

The following apply:

(1) A grower/processor shall meet the same municipal
zoning and land use requirements as other manufacturing, processing and
production facilities that are located in the same zoning district.

(2) A dispensary shall meet the same municipal
zoning and land use requirements as other commercial facilities that are
located in the same zoning district.

(3) A municipality may enact an ordinance prohibiting or
limiting the number and type of medical cannabis organizations permitted to
operate in the municipality, including the time, place, and manner of
operation.

§16A-15-8. Notice to bureau.

(a) A municipality that enacts a restrictive ordinance
pursuant to section seven of this article, shall promptly notify the bureau of
such action.

(b) A county commission shall notify the bureau if a
county votes to prohibit allowance of a medical cannabis organization pursuant
to section six, article seven of this chapter.

§16A-15-9. Applicability.

The issuance of permits and other authorizations shall
begin upon publication of a notice by the bureau in the State Register that
adequate emergency or permanent rules have been adopted to initiate the program
under this act.

article 16. effective date.

§16A-16-1. Effective date.

(a) Unless excepted in subsection (b) or (c), the
provisions of this act shall be effective upon passage.

(b) The provisions of article twelve of this chapter, and
any other criminal provisions or penalties contained in this act, shall not be
effective until ninety days from passage of Senate Bill 386 during the 2017
regular session.

(c) Notwithstanding any provision of this chapter to the
contrary, no identification cards may be issued to patients until July 1,
2019. The Bureau may take sufficient steps through rule to implement the
preliminary provisions in preparation for implementation of the provisions of
this act.